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TORONTO, July 26, 2012 /CNW/ - Aureus Mining Inc. ("Aureus" or "Company", TSX & AIM: AUE) announces the signing of an agreement for the acquisition of certain legacy mining rights from Weajue Hill Mining Corporation ("WHMC"). The legacy mining rights are situated in the Weaju area, covering only 1.7km2 of the total 457km2 Class A Mining Licence granted by the Republic of Liberia on July 29, 2009 to Bea Mountain Mining Corporation ("BMMC"), a wholly-owned subsidiary of Aureus.
As part of the transaction, WHMC agreed to release all claims pertaining to the legacy mining rights and will receive an initial payment of US$1.3m and the share equivalent of US$1.2m in common shares of Aureus. Upon the completion of a feasibility study for the Weaju project, WHMC will receive payments equivalent to US$5 per ounce of measured, indicated and inferred resources, as disclosed in the feasibility study, within the claims area and the surrounding 200 metre perimeter ("Payable Area"). If commercial production is achieved within the Payable Area, WHMC will receive a one-time payment equivalent to 2.5% of the net present value (8% discount rate) of a project within the Payable Area, and also receive a 7.5% net profit interest ("NPI") on life-of-mine production within the Payable Area. The Government of Liberia has attested to and endorsed the agreement.
David Reading, Chief Executive Officer and President of Aureus, commented:
"Aureus believes that New Liberty is just one of several potential gold mines within our licences in Liberia, with Weaju being a key prospect, which can quickly move to resource status. This agreement completes all of the legacy ownership issues and is an important step towards unlocking the significant potential of the Weaju area. Management is very encouraged by the promising intersections returned to date, which include 33g/t of gold over 24m and 19.9g/t of gold over 34m. This agreement enables us to embark on the planned 8,500m diamond drilling programme from Q4 2012, when the next field season begins and also allows local stakeholders to maintain a strong interest in the project. To the best of our knowledge, there are no other disputed rights within our mining licence."
The Weaju Target
The Weaju target is located 30km east northeast of the New Liberty Project in Liberia, within the 457km2 Bea Mountain Mining Lease. Two historical phases of diamond drilling were conducted at the target, totalling 48 holes and 3,935m, between 2000 and 2006. Highlights of these encouraging early results are displayed in Table 1, below. The ore is near surface and truckable to the proposed New Liberty plant, which could provide a fast-track production option for Weaju.
Table 1: Significant Intercepts at Weaju
|Hole ID||From (m)||To (m)||Length (m)||Au (g/t)|
A next phase of drilling is planned at Weaju, to begin in Q4 2012, once the next field season is underway, with the opportunity to advance quickly to a resource project. The large programme of 8,500m diamond drilling is planned to test the mineralised, sheared and folded ultramafic body over a potential strike length of over 1km.
The following link shows the settled WHMC legacy mining claim within the Bea Mountain Mining Licence:
About Aureus Mining Inc.
The Company's assets include the New Liberty gold deposit in Liberia (the "New Liberty Gold Project"), which has an estimated Reserve of 873,000 ounces of gold grading 3.1 g/t and an estimated Measured and Indicated Mineral Resource of 1,143,000 ounces of gold grading 3.6 g/t and an estimated Inferred Mineral Resource of 593,000 ounces of gold grading 3.2 g/t. A technical update for the New Liberty gold project was released in February 2012, derisking and building on the robust PEA, filed in December 2010. The project is expected to have an eight year mine life and annual production of 123,000 ounces for the first four years.
The New Liberty Gold Project is located within the Bea Mountain mining license which covers 457 km² and has a 25 year, renewable, mineral development agreement. The Bea Mountain mining license also hosts the proximal gold targets of Ndablama, Gondoja and Weaju, which are the focus of exploration programs during 2012. The contiguous Archaen Gold exploration licence is also a focus of exploration for 2012, with Leopard Rock being the main target.
The Company also has gold assets within exploration properties in Cameroon.
This press release contains certain forward-looking information. All information, other than information regarding historical fact, that addresses activities, events or developments that Aureus Mining believes, expects or anticipates will or may occur in the future is forward-looking information. Forward-looking information contained in this press release includes, but may not be limited to, the future plans and objectives of Aureus Mining and their anticipated future growth, mineral resource estimates and the anticipated exploration and development activities of Aureus Mining. The foregoing and any other forward-looking information contained in this press release reflects the current expectations, assumptions or beliefs of Aureus Mining based on information currently available to Aureus Mining. With respect to the forward-looking information contained in this press release, Aureus Mining has made assumptions regarding, among other things: general business, economic and mining industry conditions; and it has also been assumed that no material adverse change in the price of precious and/or base metals occurs, no unusual geological or technical problems occur and no significant events occur outside of the normal course of Aureus Mining's respective business.
Such forward-looking information is subject to a number of risks and uncertainties that may cause actual results or events to differ materially from current expectations, including: risks normally incidental to exploration and development of mineral properties; uncertainties in the interpretation of results from drilling and test work; the possibility that future exploration, development or mining results will not be consistent with expectations; uncertainty of mineral resources estimates; adverse changes in precious and/or base metal prices; and future unforeseen liabilities and other factors including, but not limited to, those listed under "Risk Factors" in the Preliminary Prospectus of Aureus Mining Inc. dated April 20, 2011, a copy of which is available on SEDAR at www.sedar.com, and in the Aureus Mining Admission Document, a copy of which is available at www.aureus-mining.com.
Any mineral resource figures referred to in this press release are estimates and no assurances can be given that the indicated levels of minerals will be produced. Such estimates are expressions of judgment based on knowledge, mining experience, analysis of drilling results and industry practices. Valid estimates made at a given time may significantly change when new information becomes available. While Aureus Mining believes that the mineral resource estimates in respect of their respective properties are well established, by their nature mineral resource estimates are imprecise and depend, to a certain extent, upon statistical inferences which may ultimately prove unreliable. If such mineral resource estimates are inaccurate or are reduced in the future, this could have a material adverse impact on Aureus Mining, as applicable. Due to the uncertainty that may be attached to inferred mineral resources, it cannot be assumed that all or any part of an inferred mineral resource will be upgraded to an indicated or measured mineral resource as a result of continued exploration.
Forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable law, Aureus Mining disclaims any obligation to update or modify such forward-looking information, either as a result of new information, future events or for any other reason.
SOURCE: Aureus Mining Inc.
For further information:
Aureus Mining Inc.
David Reading / Jeremy Cave
Tel: +44(0) 20 7257 2930
RBC Capital Markets (Nominated Adviser and Joint Broker)
Martin Eales / Richard Hughes
Tel: +44(0) 20 7653 4000
Bobby Morse / Gordon Poole
Tel: +44(0) 20 7466 5000
GMP Securities Europe LLP (Joint Broker)
Richard Greenfield / Alexandra Carse
Tel: +44(0) 20 7647 2800